Last year, approximately 17,000 new franchise locations were opened. Small business is big business! Becoming a business owner is an exhilarating and empowering experience. The first year as a new franchisee is an exciting time, but it is also normal to have questions about what to expect as you start this new journey.
The first year as a franchise owner is different from all the rest. It’s an important time to lay the foundation for your future business success. Let’s take a closer look at the first year to discuss opening your franchise, advice for new franchisees, and how your business will evolve.
THE BEGINNING OF YEAR ONE: OPENING YOUR FRANCHISE
After you’ve completed the franchise research, done your due diligence, and made a selection, you are a franchise owner – congratulations! That was a lot of hard work, but you did it. Now is a great time to take a mini-vacation. Reward yourself, rest up, and get ready. You’re about to get to work opening your new franchise and building your dreams and goals!
Franchise Opening Timeline for Service-Based Business
Service-based franchises usually operate out of an office or home office, and therefore have less overhead and take less time to open. On average, service-based franchises will open in 3-6 months (although this can vary based on the franchise).
After you’ve said “yes” to a service-based franchise, the parent company’s support service will start the pre-training program. This training takes about 4-6 weeks and helps to get you organized and prepared for the in-person training. They will make sure you have:
- A corporation
- DBA title
- Bank accounts
- Website
- Insurance
Once the paperwork side of your business is set up, you’ll receive in-person training from the franchise company. This is where you learn the skills and practical information you need to actually “do” the business.
After in-person training, you have the knowledge, marketing materials, and maybe even some leads to open your business and start making money.
Franchise Opening Timeline for Retail-Based Business
The process and timeline for opening a retail-based franchise are a little different and take longer because you need a brick-and-mortar location. This requires you to go through the real estate process and a build-out of the location. These franchises can take anywhere from 9-18 months to open (although this can vary based on the franchise).
The franchise company operations and support staff will still assist you and provide pre-training, but retail company pre-training also includes connecting you with realtors to look at site locations and spaces.
When your physical business space is nearing completion, then you’ll have in-person skills-focused training. This also includes hiring a manager and employees, doing marketing, and your soft opening and grand opening, etc. to get you ready for business.
ADVICE FOR FIRST-YEAR FRANCHISE OWNERS
- Build your entrepreneurial muscles. Your first year as a franchise owner is all about setting a solid foundation for your business. This allows your business to grow strong and continue to be successful as it evolves.
- Just keep going. This is a common piece of advice I give to first-year franchise owners. The majority of the problems you will face as a franchise owner will be improved if you can just keep moving forward. Your perseverance will pay off.
- Invest in yourself. Success is an inside job. You need to develop an empowered mindset and continue to learn, read, push your boundaries, nurture relationships, and get comfortable with being uncomfortable. Investing in yourself also means giving yourself time to rest and relax.
- Use your resources. You’ve paid the franchisor for their business model and their expert knowledge of how it works. They may even provide a business coach to help you set and track goals and make sure you’re hitting key performance indicators to keep you on the path to success.
Watch this video to hear more advice directly from the mouths of successful franchisees.
EVOLUTION AND STAGES OF FRANCHISE OWNERSHIP
A lot will happen during your first year as a franchisee as you open your business, and it begins to grow. This doesn’t stop after the first year. Your business will continue to grow and evolve and so will you as a business owner.
A great book that talks about the different stages of franchise ownership is The Educated Franchisee by Rick Bisio and Mike Kohler. They discuss franchise evolution in five stages:
- Infancy (0-6 months): Establishing a foundation for your business.
- Childhood (6-12 months): Understanding the business and building on your foundation.
- Adolescence (1-2 years): Solidify your plan and begin to see trends in the business.
- Adulthood and Parenthood (3-4 years): Your business is maturing and you are considering how to nurture and expand on your success.
- Elder Statesman (5+ years): You have a role in the franchise organization and are regarded as a pillar of the system.
Your first year as a franchisee can be challenging, but it is also such an exciting time and things will get easier. Look how far you’ve already come!
If you’re interested in taking the exciting and empowering path to business ownership, reach out to learn more about the franchise process and what opportunities are available for you.
